The View 7th edition

45

250

200

Budapest

150

Other cities

100

Average hotel size (right)

No. of rooms

50

0

2010 2011 2012 2013 2014 2015 2016 2017 2018 F 2019 F 2020 F 2021

New Hotel Supply and Pipeline in Hungary

Source: CBRE Research

market. Although we experience significant shifts in completion dates throughout the capital and regional cities, development activity remains strong across the country, with expected delivery of ca. 2,000 rooms in 16 individual hotel schemes until the end of 2019. Budapest accounts for 75% of the overall pipeline volume scheduled for the year, remaining the most targeted region within Hungary. Despite the uncertainty surrounding exact opening dates, CBRE monitors some 2,900 rooms across 20 hotels believed to be under construction at the moment. This is a significant increase compared to the 1,600 rooms in the pipeline a year ago. The overall confirmed pipeline – including projects still

in the planning phase – comprises ca. 4,400 rooms throughout Hungary, out of which 3,800 are in Budapest. Widely recognized international luxury hotel chains are likely to open towards the Hungarian market in the next years, extending their portfolio through the newest brands representing the grade-A category worldwide: Marriott International – who proved to be the most active player on the domestic market – has three ongoing projects totalling 450 premium hotel rooms, each of them situted in landmark locations atfrequented downtown traffic arteries. Another notable development is the Unbound Collection by Hyatt in the renovated Párisi Udvar building, which is set for completion in Q2 2019 with 110 rooms.